ZestyPickle

HSBC

Does this mean it is better to earn 11.9 LPA than 12.1 LPA?

I hope this is not the case!

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PrancingCoconut

Amazon3mo

Bruh... The taxes are in slabs, not as a whole. If 12-16 is 15% then only the amount above 12 and below 16 lakhs will be taxed at 15% not the entire amount

ZestyPickle

HSBC3mo

Just FYI

JumpyPretzel

Stealth3mo

@roct You are wrong. If you earning is above 12.75, then even your earning below 12 lakhs will be taxed as per that table. But this is nothing new, this was already in place since new tax regime came into existence (just amount limits and slabs got changed this year)

JumpyWaffle

Grapevine3mo

Looks like it

ZestyPickle

HSBC3mo

“Marginal relief ensures that taxpayers with income slightly above 12 lakh do not pay excessive tax compared to those earning 12 lakh or below. If a taxpayer earns ₹12,10,000, they would normally pay ₹61,500 in tax. However, under marginal relief, they will pay only ₹10,000, ensuring their net income remains close to ₹12 lakh.”

JumpyPretzel

Stealth3mo

Yes, and this is nothing new, it has been like this for past few yrs, just that 12 lakhs was 7 lakhs earlier.

ZestyPickle

HSBC3mo

Yeah I agree this was already in place.
However the benefit is not monotonically increasing. 12 to 20 are not getting much benefit!

FluffyCupcake

Amazon3mo

IITs need to teach taxation in more details

ZestyPickle

HSBC3mo

For example?

ZestyPickle

HSBC3mo

If you’re talking about marginal relief, I agree I didn’t know.
However, I feel 99% people here don’t know that.
And honestly never had to be worried about because was always in 30% bracket.

SillyWalrus

Stealth3mo

No, there's no case where a person earning more has a lesser take home than a person earning less. There's marginal relief up to 12.75 lakhs. So you'll get marginal relief for an income up to 13.5L (13.5L - 75K std deduction = 12.75L). The only catch here is a person earning 12.75L and someone with a 13.5L package will have the same take home.

ZestyPickle

HSBC3mo

What about CESS?

QuirkyDumpling

MSCI3mo

Simple answer to your question is yes.

ZestyPickle

HSBC3mo

I know but the actual answer is no. It is one and the same.

Source: https://www.cnbctv18.com/budget/budget-2025-new-income-tax-slabs-rates-and-benefits-explained-faqs-19550767.htm/amp

QuirkyDumpling

MSCI3mo

Just under how rebate under sec87A works. This is for last year that was 7L, but same is done for 12L this year. So if your taxable income in new regime is a single penny more than 12L, your rebate is gone and you have to pay tax from 5L onwards. 25% bracket is though a benefit in new regime from last year

SquishyQuokka

CrowdStrike3mo

yes kind of if your income is less than 12.75 no tax if up then you will have to pay tax as per slab. one thing is there will be marginal relief(not officially released anything but we can expect soon) like they do for people above 50 lakh and 1 crore in case of the surcharge.

on the side note ignore all the people questioning you about HSBC these are the types of people whom we see on the TV News debate on the road who themselves don't know anything but try to act smart.

ZestyPickle

HSBC3mo

Yeah marginal relief is there. It will continue as before.

The funny part about these people is that they can’t explain their point when asked. Because they don’t even know. 😅

But good to see that there are still some people who are standing up for what’s right. Anonymous platform truly shows the character.

By the way source: https://www.cnbctv18.com/budget/budget-2025-new-income-tax-slabs-rates-and-benefits-explained-faqs-19550767.htm/amp

GoofyBurrito

Stealth3mo

Read more on marginal relief
If you earn 12.1 after standard deduction, your income tax would be 10k
For 12.6L , income tax would be 60k

You have to pay either income tax acc to slabs without rebate or the additional income over 12L (whatever is less)

But yes .. earning 12L-12.7L is the same for you

ZestyPickle

HSBC3mo

I thought there must be such provision but most of us are not aware. Thanks for highlighting. Any trusted resources you can share?

FluffyCupcake

Amazon3mo

Ya, u can go n tell the employer , I wanna earn 11.9 irrespective of everything else

ZestyPickle

HSBC3mo

https://www.cnbctv18.com/budget/budget-2025-new-income-tax-slabs-rates-and-benefits-explained-faqs-19550767.htm/amp

GigglyTaco

Wayfair3mo

just read about marginal relief

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